credit card
A buy-now-pay-later payment tool whose bill is paid off each month.
What it means
A credit card is a payment tool that lets the holder shop first and pay later according to the monthly bill. The cardholder is given a certain credit limit by the issuer. If the bill is not paid in full when due, there will be interest and additional fees.
Why it matters for families
A credit card can make payments easier and help track spending, but it can also trigger spending beyond one's means. Families need to distinguish between a payment tool and extra income. If the bill is only partially paid over and over, interest can pile up and strain the budget.
Example
For example, a credit limit of Rp5 million and the family spends Rp1.5 million in a month. If the bill is paid in full when due, there is no interest. But if only the minimum payment is made, the remaining bill will accrue interest and add to next month's burden.
Common misunderstanding
Some people think a credit card is extra money. In fact, it is debt that must be repaid, often with interest if paid late or underpaid.